Company Registration No. 12214443 (England and Wales)
AVALON COSMETICS LIMITED
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2020
PAGES FOR FILING WITH REGISTRAR
AVALON COSMETICS LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 5
AVALON COSMETICS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2020
31 December 2020
- 1 -
2020
Notes
£
£
Fixed assets
Investments
3
250,000
Current assets
-
Creditors: amounts falling due within one year
4
(249,999)
Net current liabilities
(249,999)
Total assets less current liabilities
1
Capital and reserves
Called up share capital
5
1
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.
true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the director and authorised for issue on
16 February 2021
Mr M M Alghannam
Director
Company Registration No. 12214443
AVALON COSMETICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2020
- 2 -
1
Accounting policies
Company information
Avalon Cosmetics Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
25 Basil Mansions, Basil Street, London, SW3 1AP.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention
.
The principal accounting policies adopted are set out below.
1.2
Going concern
At the time of approving the financial statements, the director ha
true
s
a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continue
s
to adopt the going concern basis of accounting in preparing the financial statements.
As part of making the above assessment the director ha
s
considered the impact of the global Covid-19 pandemic on the company. The company have been able to maintain their day-to-day activities during the pandemic. The duration of the Covid-19 pandemic remains unclear at this time, and it is not possible to reliably estimate the impact on the financial position and results of the company for future years. However, the director ha
s
undertaken a review of the business in the current situation and consider
s
it to be appropriate to prepare the financial statements on a going concern basis.
1.3
Reporting period
The reporting period has been
lengthened
to change the year end to that of the parent company.
1.4
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
AVALON COSMETICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 3 -
1.5
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including
creditors,
are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities.
1.6
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
2
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2020
Number
Total
AVALON COSMETICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2020
- 4 -
3
Fixed asset investments
2020
£
Shares in group undertakings and participating interests
250,000
Movements in fixed asset investments
Shares in group undertakings and participating interests
£
Cost or valuation
At 18 September 2019
-
Additions
250,000
At 31 December 2020
250,000
Carrying amount
At 31 December 2020
250,000
4
Creditors: amounts falling due within one year
2020
£
Amounts owed to group undertakings
249,999
5
Called up share capital
2020
2020
Ordinary share capital
Number
£
Issued and fully paid
Ordinary shares of £1 each
1
1
6
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was Richard Hayward.
The auditor was Ward Williams.
AVALON COSMETICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2020
- 5 -
7
Parent company
The immediate parent company is
Avalon Pharma UK Holdings Limited
, a company registered in England and Wales.
The ultimate parent company is
Middle East Pharmaceutical Industries Co. Ltd (Avalon Pharma) and their
registered office is 8146 King Muhammad V, Sulimaniyah, Riyadh 12223, Kingdom of Saudi Arabia.